China Digital Times

China news tagged with: oil (156)

• New Strategies for China’s Energy Quest

  

  From Caijing Magazine:

  This has been the busiest spring ever for the international affairs department at China National Petroleum Corp. (CNPC), where a sense of achievement brightens the daily bustle at the company’s new headquarters in Beijing.

  In recent months, the department has sponsored a conference every day and a new round of negotiations every few days. For example, it helped arrange an agreement February 17 in which China will lend Russia US$ 25 billion in exchange for 300 million tons of oil over 20 years.

  The Sino-Russian deal drew attention from Brazil, Venezuela and other countries eager to secure similar agreements. Brazil hopes to get US$ 10 billion to search for oil in its deep seas, while Venezuela and Angola would like US$ 4 billion and US$ 1 billion, respectively, in contracts with China. Kazakhstan wants US$ 10 billion to buy oil fields from foreign stakeholders and expand domestic infrastructure projects.

  » Read more
  • May 19, 2009 2:06 AM

• Kazakhstan, China in Negotiations over Joint Ownership of Major Kazakh Energy Company

  

  China may soon own 49 percent of Kazakhstan’s fourth largest oil producer. From AP via The Los Angeles Times:

  CNPC’s proposed purchase of the stake in MangistauMunaiGaz would consolidate Chinese energy interests in the oil-rich region. MangistauMunaiGaz, which controls oil reserves estimated at 500 million barrels, has also been eyed by Russia and India’s national energy companies in recent months.

  “KMG and CNPC are currently negotiating CNPC’s involvement in the purchase of MMG, and we are planning to sign some documents on that in the nearest future,” Arzhan Takachakov, a spokesman for the state energy company, KazMunaiGaz, said by E-mail.

  [...]

  China is seeking to bolster its energy security by sealing long-term deals with neighboring states and reducing its reliance on maritime oil transportation routes.

  » Read more
  • April 13, 2009 9:23 PM

• Russia signed 20 year contract for crude oil supply to China in exchange for $25bn loan

  

  On February 17th, 2009,  Russia signed its biggest ever energy deal, under which its oil companies will receive $25 billion in loans in exchange for 20 years long-term crude supplies to China.  Russian delegation currently in China included Deputy Prime Minister Igor Sechin, who oversees the energy sector, Energy Minister Sergei Shmatko, Rosneft President Sergei Bogdanchikov and Transneft President Nikolai Tokarev. The terms of the deal were not disclosed to the press, Transneft and Rosneft immediately declined comments.  That was the logic result of series of attempts of Russian government to get loan from China. Oil prices are now in downturn and it’s evident that China under this deal secured for itself long term crude supplies paying lowest ever price.

  However it’s not the final accord in the race for Chinese funds. Next day, February 18th, President of Venezuela Hugo Chaves, after winning the right for his lifetime presidential post,

  claimed that he would be glad to supply crude oil to China for 200 years. Time will show who will get better deal. Any way China saved huge amount of funds before recession and now squeezes the best out of this advantage.

  » Read more
  • February 18, 2009 3:26 PM

• Energy Security Guides China on Gaza

  

  The Asia Times reports that China has joined international calls for a ceasefire in the Gaza Strip and will be sending a special Middle East conflict resolution envoy to Egypt, Palestine, and Israel.  China also has promised $1,000,000 USD to the Palestinian National Authority for humanitarian aid:

  “China is an emerging economic power and has to push for increasing its influence in the Middle East,” said independent energy analyst Liu Tao. “Participating along with other world powers in the resolution of the current conflict in the region can help China better ensure its energy security.”

  Although a relatively new player in the Middle East, in recent years China has invested diplomatic efforts into cultivating relations with countries in the region. While seeking to carve out a space for itself in a region traditionally dominated by US and British influence, Beijing has concentrated on upgrading economic ties.

  Arab countries are currently China’s eighth-largest trading partner. In the Middle East, and in the Persian Gulf in particular, China is no longer viewed just as a source of low-priced consumer goods but mainly as a major market for oil…Today, more than 50% of China’s oil imports come from the Middle East.

  For more on Chinese relations with Middle East, see past CDT posts.

  » Read more
  • January 14, 2009 9:04 PM

• China Accelerates Filling Up Its Oil Reserves

  

  From The Wall Street Journal:

  As the U.S. seeks to stockpile oil, China has been doing the same, observers say, and is expected to quicken the pace — a development that already may be helping to boost oil prices.

  On Friday, the U.S. Department of Energy said that amid low oil prices, it aims to fill the country’s Strategic Petroleum Reserve to capacity this year.

  That news followed a rare public statement last week from China’s top energy official, Zhang Guobao, head of the National Energy Administration, in the People’s Daily newspaper that China should take advantage of the falling global energy demand to increase its oil reserves. Mr Zhang said China will “encourage companies to utilize idle storage capacity to increase inventories.”

  » Read more
  • January 5, 2009 12:01 AM

• China Says 2008 Crude Production Pp 1.6 Pct: State Media

  

  From AFP:

  China is expected to produce a total of 189 million tonnes of crude oil in 2008, an increase of 1.6 percent over last year, state media reported Sunday.

  PetroChina, the nation’s leading oil producer, released figures saying China had found more than 20.7 billion tonnes of proven oil deposits in the past 30 years, the Xinhua news agency reported.

  China produced 186 million tonnes of crude oil in 2007, according to Xinhua. PetroChina, like many European oil companies, measures its output in tonnes instead of the US standard of barrels.

  This year’s output would be 189 million tonnes, an increase of 1.6 percent.

  » Read more
  • December 28, 2008 6:32 AM

• Official: China Wants to Put $10B in Brazil Oil

  

  China is looking to Brazil for future oil supplies. From AP:

  China wants to loan Brazil’s state oil company $10 billion to help develop massive new oil fields in deep water off the coast of Rio de Janeiro, Brazil’s top energy official said in comments published Monday.

  Mines and Energy Minister Edison Lobao also told the Folha de S. Paulo newspaper that the United Arab Emirates has offered to finance field development, but he did not specify a price tag.

  Lobao said Chinese officials contacted his ministry to propose a loan and Petrobras then negotiated directly with the Chinese. He gave no details on the status of talks, and any deal would have to be approved by his ministry.

  » Read more
  • December 8, 2008 5:56 PM

• Russia, China Sign Landmark Oil Pipeline Deal

  

  From AFP:

  Russia and China on Tuesday signed a long-awaited deal to build an oil pipeline from Siberia to China after talks between Prime Minister Wen Jiabao and Russian counterpart Vladimir Putin.

  The leaders watched as Chinese state energy major CNPC and Russian state pipeline monopoly Transneft signed the deal to build the pipeline from the Siberian town of Skovorodino to the Chinese border.

  The pipeline agreed on Tuesday would have a capacity of 15 million tons of oil per year and would be a branch of the main East Siberia-Pacific Ocean trunk pipeline, which is still under construction, officials said.

  “We should deepen cooperation in the energy sphere. Long-term cooperation will help economic development and stability on world markets,” Wen said at the opening of a Russia-China business conference with Putin in Moscow.

  Read also: Russia Swaps Oil For Chinese Cash by Lionel Lauren in the Forbes:

  During difficult times, emerging markets can help each other out: China and Russia signed a deal to build an oil pipeline between the two countries on Tuesday, amid speculation that China would grant a loan of around $25 billion to Russian oil companies as part of a renegotiated supply deal.

  Although the new supply deal has long been expected, Russia is facing added pressure from the financial crisis and the falling price of oil. That means it is likely to offer China oil supplies at a discount in an effort to secure much-needed funds for infrastructure investment and capital expenditure. For Russian oil major Rosneft (other-otc: RNGZY - news - people ), that could be a big breath of fresh air.

  » Read more
  • October 28, 2008 8:21 PM

• Venezuela, China to Build Refineries, Boost Sales

  

  From Bloomberg:

  Venezuela, the world’s fifth-largest oil exporter, and China plan to build refineries and boost oil shipments, said President Hugo Chavez, who is seeking to lessen dependence on the U.S.

  The countries will sign agreements that will include building a refinery in block Junin 8 in the Orinoco Belt, South America’s biggest oil area, Chavez said today in Beijing in a phone interview with Venezuelan state television. The accords will deepen cooperation between the two countries, he said.

  Chavez, who is in China this week on a tour that includes Russia and Cuba, has sought closer ties with U.S. rivals. Earlier this month, Chavez expelled the U.S. ambassador to Caracas and signed an agreement with Russia’s OAO Gazprom on offshore projects. China, the world’s second-biggest oil user, needs fuel as its economy grows at a double-digit pace.

  Read also Chavez sees 1 million-barrel oil exports to China from AP and a report from CNN.

  Forbes reports on the triangular relationship between China-Venezuela-United States:

  Chavez wants to market more of his country’s oil to China so that it is less dependent on U.S. demand. The United States consumes about 60% of oil exports from Venezuela, the fifth-biggest exporter in the world. “Venezuela has enough oil to last for 200 years,” said Chavez, who heads to Russia on Thursday for the next stop on his five-country tour. “And the Chinese are already working to tap that.”

  While Chavez visited Beijing, Chinese Premier Wen Jiabao was in New York for the opening of the U.N. General Assembly session this week, remarking on Tuesday that China and the United States are “partners,” not rivals. A Foreign Ministry official also sought to reassure the world, emphasizing at a press conference that relations between China and Venezuela are “not based on ideology, are not targeted against any third party and will not affect other countries’ relations with Venezuela.”

  But, in a development likely to irritate Washington, Chavez said he also hopes to cement an agreement to buy combat aircraft, specifically 24 K-8 planes for his country’s air force, from China.

  » Read more
  • September 24, 2008 6:47 AM

• Iraq Hopes to Finalize China Oilfield Deal in August

  

  China and Iraq will be renegotiating a deal to explore for oil. The deal, originally signed in 2003 with Saddam Hussein, was shelved after U.N. sanctions and the U.S. invasion of Iraq. From Reuters:

  Iraq’s oil minister will visit China before the end of August to try and finalize a deal to develop the Ahdab oilfield south of Baghdad and build a power station nearby, the Oil Ministry said on Sunday.

  Oil Minister Hussain al-Shahristani said in April that Iraq would honor the $650 million deal signed in 1997 between Chinese National Petroleum Company (CNPC) and Saddam Hussein’s government, but the terms would be renegotiated.

  “A high-ranking delegation headed by the oil minister will go to China by the end of the month to try and finalize the contract regarding the Ahdab oilfield,” Oil Ministry spokesman Asim Jihad said on Sunday.

  The Dar Al-Hayat gives a brief summary of the chaotic politics of Iraqi oil industry that China has to work with:

  Iraq’s oil industry is currently passing through a critical phase caused by political disputes. As such, it becomes impossible to determine which side is truly in charge of this vital sector.

  Iraq’s oil sector suffers so much chaos to the point that it is impossible to determine which side is in charge of negotiating and contracting with international firms. For example, the federal government concludes agreements with international parties to sell and export a certain volume of crude oil or natural gas, while a few local groups sign agreements with other firms over the same volumes of crude oil and natural gas without the knowledge of the federal government. This is all in the name of federalism . . .

  The Press TV also writes briefly on the forecasted future of Iraq’s oil and the current oil field in the China deal:

  “Iraq and China are keen to show their cooperation by finalizing an agreement on developing the Ahdab oil field,” said the ministry in a Sunday statement following a meeting between Iraqi Oil Minister Hussain al-Shahristani and China’s ambassador to Baghdad.

  The Ahdab field, which is situated in the province of Wasit, could produce up to 115,000 barrels of crude per day.

  » Read more
  • August 10, 2008 6:04 PM

• China, India Vie for Russian Oil

  

  From Wall Street Journal:

  China and India are facing off yet again in the race to secure energy resources to fuel their economic growth, this time in Russia’s Siberian oil fields.

  China Petroleum & Chemical Corp., known as Sinopec, has joined the bidding for London-listed Imperial Energy Corp., which primarily produces oil in Russia, a person familiar with the situation said Monday. India’s state-owned Oil & Natural Gas Corp. has already offered about $2.5 billion for Imperial Energy, according to another person with knowledge of that offer.

  Zhang Zheng, deputy director of Sinopec’s foreign affairs bureau, said he knew nothing about his company’s offer for Imperial Energy and hadn’t heard of the British company. Officials at ONGC weren’t available for comment.

  » Read more
  • August 4, 2008 6:06 PM

• CNOOC Eyes Global Market, Deep Sea Oil

  

  From Caijing Magazine:

  China’s largest ever acquisition of a foreign company has given energy developer China National Offshore Oil Corp. (CNOOC) a chance to tap deepwater resources at home and expand in new markets abroad.

  The proposed US＄ 2.5 billion buyout of the Norwegian oil services company Awilco by CNOOC subsidiary China Oilfield Services Ltd. (COSL) (SSE: 601808, HKSE: 02883) is expected to open access to newly discovered oilfields in the deep waters of the South China Sea.

  The COSL-Awilco agreement announced July 7 would be “the largest overseas acquisition made by a Chinese company,” said a person close to the deal.

  Awilco’s directors have recommended shareholders approve the sale, which is expected to close in September or October. Beijing’s chief economic planner, the National Development and Reform Commission, gave its blessing on July 28.

  » Read more
  • July 29, 2008 6:13 AM

• Niger Signs Power Deal with China

  

  The government in Niger has signed an agreement for China to help improve the country’s power supplies. China will transfer several electrical power units to Niger under the agreement, officials said. [...] Chinese companies have recently become more active in Niger, exploring for uranium and oil in the north and east of the country.

  Government officials said the power units were being dismantled in China prior to their transfer, the BBC’s Idy Baraou reports from Niger:

  Niger is historically a gateway between Northern and Sub-Saharan Africa and is rated as one of the world’s poorest country by the UN.  More than two-thirds of its people live below the poverty line and 82% rely on agriculture. In recent years, Niger has frequently suffered famines and internal unrest from an insurgency by Tuareg rebels in the North and their campaign for greater autonomy. In 2007, rebels briefly kidnapped an executive from a Chinese uranium company working in the northern Diffa area, who was later freed.

  Apart from a few small infrastructure projects and other investments, China has thus far not been very active in Niger compared to its presence in other African countries. But only recently, China announced that it will invest $5bn over the next three years to develop oil production in Niger’s eastern Diffa region, where the country’s oil reserves are located (for comparison, Niger’s GDP at purchasing power parity is about $9bn). China’s state-owned National Petroleum Corp (CNPC) is expected to produce the country’s first barrel of crude oil in 2009. The total estimated investment of $5 billion is China’s biggest in the Sahel state to date.

  » Read more
  • July 7, 2008 9:15 AM

• U.S. and China: Accessing Africa’s Black Gold

  

  From the Washington Times:

  [...] Events in Africa shape a new quest for untapped resources, namely oil. All that talk about “blood diamonds” only shrouds a more important dialogue on the fierce competition between the U.S. and China for the dangerously coveted fossil fuel. China’s excessive growth, combined with its growing military and diplomatic presence, underscores a need for more oil as its population and economy expand. Meanwhile, U.S. grumbling over rising oil prices and the continuing issue of decreased OPEC production will drive the demand for more exploration, drilling and defense of present and future oil reserves.

  [...] The U.S. imports more oil from West Africa than Saudi Arabia and Kuwait combined; and, within the next decade, we’ll be drawing more oil from Africa than from our normal tap in the Middle East. Under the guise of the “war on terror,” the U.S. military presence is much more pronounced than in previous years, with the Pentagon now creating Africom as a new regional command center. The Bush administration fronts about its concern over HIV/AIDS, al Qaeda and illicit drug rings in Africa, but it’s all about the oil - a direct response to China’s move for the exact same thing. The Chinese, forming solid ties with African dictators like Mr. Mugabe (one main reason driving his emboldened arrogance), will continue ramping up trade deals, cultural linkages and military sales. At some point, Mr. Mugabe will have to chill if Zimbabwe’s troubles spread like a virus into South Africa – Africa’s largest economy and platform for continental business.

  Few want to ponder it since modern “colonialism” is a culturally sensitive topic. That brings us back to the election. Pressing candidates on Iraq only begs the question; Africa is the real deal, especially if the Democratic nominee becomes president. He may not want to hear it, but a “President Obama” could tip the competitive scales on the continent. Africans, basking in the euphoria of their perceived “son” as “leader of the free world,” would respond positively to an Obama administration. He would be the friendly point man leveraging U.S. influence in that region, the public relations coup against rapid Chinese clout. His only challenge would be maneuvering the muddy madness of greedy dictators suppressing any chance at democratic reform. But the great legacy of the man with the Kenyan father could be unprecedented American access to African oil.

  Also see this article in the Washington Post, China, Africa, and Oil.

  » Read more
  • July 3, 2008 8:51 PM

• China Raises Gasoline and Diesel Prices

  

  On Friday new retail prices for gasoline, diesel and jet fuel came into effect in China. From Asia Times:

  The retail price for petrol was raised 16.7% to 6,980 yuan (US$1,014) a tonne, effective on Friday, by the National Development and Reform Commission (NDRC), which sets the mainland’s economic policy. The diesel price was raised by 18.1% to 6,520 yuan a tonne and the wholesale price of jet fuel was pushed up 25.2% to 7,450 yuan a tonne. Retail electricity prices were raised by 0.025 yuan per kilowatt-hour, except for northwest China’s Xinjiang Uygur Autonomous Region and earthquake-hit areas, from July 1.

  News of the price increase in China might, however, make energy a little bit cheaper for the rest of the world.

  International oil prices fell sharply after the Chinese government announcement, with crude oil futures in New York falling 2% to US$133.97 a barrel by 11.30 pm (Hong Kong time) on Thursday, and falling further to $132.50 on Friday afternoon.

  Though fuel in China is still dirt-cheap, the price hike caused turmoil in gas stations. The Guardian reports:

  At least one station told customers that it would shut for repairs until the price hike took effect at midnight, prompting an altercation between staff and angry motorists. “You guys make a huge profit and get high prices. We consumers are pitiful,” said a Shanghainese waiting to fill his Volkswagen Santana.

  Al Jazeera also covered the issue and summed up the main points in a short video clip:

  » Read more
  • June 22, 2008 6:54 PM

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